†This loan has a variable interest rate that is based on a publicly available index, the Prime, as published in The Wall Street Journal. Your rate may change each month and will be calculated by adding the Prime to a margin between 2.00% and 8.00%. Rates and terms based on credit criteria and are all subject to change. The lower rate displayed in the rate range above assumes a 0.25% rate reduction upon borrower enrolling in automatic payments. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is cancelled, any increase will take the form of higher payments.

*APR = Annual Percentage Rate. Rates and terms based on credit criteria and are all subject to change.

**Subject to Credit Union approval. The Repayment Period begins after the In-School and Grace Period.

What is a Limestone Federal Credit Union Private Student Loan?

The Limestone Federal Credit Union Private Student Loan can be used to pay for qualified educational expenses including tuition, room and board, books, and other school related expenses. Private student loans serve as a way for students to fill the funding gap between the cost of attending school and the amount of federal loans, grants, and available scholarships.

What is the difference between a private student loan and a federal student loan?

Federal student loans follow guidelines set forth by the U.S. Dept of Education and typically offer fixed and lower interest rates compared to private student loans. However, federal loans, unlike most private loans, have borrowing limits, which may not allow a student to borrow enough to cover the entire cost of education. Private loans help students fill the funding gap between the cost of attending school and the amount of federal loans, grants, and available scholarships. Both private and federal student loans typically allow students to defer payments while in school and some offer economic forbearance options once a student completes school. Unlike federal loan programs, private lenders assess the credit history of the borrower and cosigner before making a loan.

How do I know if I’m eligible for financial aid?

Eligibility for federal, state and university funded financial aid is determined by completing the Free Application for Federal Student Aid (FAFSA). All students are strongly encouraged to apply for federal aid by completing the FAFSA, which can be obtained online at www.fafsa.ed.gov.

How much financial aid am I eligible to receive?

The financial information you provide in the Free Application for Federal Aid (FAFSA) is used by the government to determine your Expected Family Contribution (EFC), which is the amount you and your family are expected to pay towards your education. The EFC is then subtracted from the cost of attendance for your respective school to determine the amount of financial aid you are eligible to receive.

What is an Expected Family Contribution (EFC)?

The EFC is a calculated assessment of how much your family is expected to contribute to your college costs. The EFC takes into consideration your family’s financial strength – income and assets. Other factors considered include the number of family members and number of family members in college.

Who is eligible for a loan?

To apply for a Limestone Federal Credit Union Private Student Loan, you must be a US Citizen or Permanent Resident enrolled at least half-time in a degree-granting program at an eligible school, and you must be a member of Limestone Federal Credit Union.

You or your cosigner also must meet our credit requirements. Choosing a creditworthy cosigner will increase the likelihood of being approved and may lead to a lower loan rate. You can apply without a cosigner if you meet all of the credit criteria by yourself.

Does applying for a federal loan impact my ability to obtain a loan?

What is a cosigner?

A cosigner is a parent, grandparent, guardian or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you. The cosigner must be a US Citizen or Permanent Resident.

Is a cosigner required to obtain a loan?

In most instances, a cosigner is required to obtain a loan. A creditworthy cosigner increases the likelihood of your loan approval and may lead to a lower loan rate. Creditworthy students that meet the credit requirements may apply without a cosigner.

Will the cosigner’s credit record be affected?

Is the cosigner responsible for repaying the loan?

If the borrower fails to repay the loan, then the cosigner is responsible for repaying the loan. However, the cosigner may be released of this obligation once the borrower is able to meet certain criteria to determine creditworthiness and makes 24 consecutive and on-time full payments of principal and interest during the Repayment Period.

When should I begin the process?

We encourage you to start early. You can start the loan application process once you know what school you will be attending, the Cost of Attendance for the current academic year, and can provide a proof of enrollment. You should allow yourself 6-8 weeks from the time of the initial application until your school receives your funds.

Do I need to be enrolled in an educational institution to complete the application process?

What proof of enrollment do I need to provide?

If you are a returning student, you must provide an unofficial copy of your most recent graded transcript as proof of enrollment at the school you are attending to complete the application process. If you are an incoming freshman, your school will confirm your enrollment during the certification process.

What is school certification?

School certification is normally completed by the financial aid staff and will include information like the Cost of Attendance and the registration status of the student. Certification ensures that the student is not over-awarded in total funding beyond the Cost of Attendance.

Will both the borrower and cosigner’s credit be checked?

What is ACS?

ACS (Academic Credit Score) is a proprietary scoring model that assesses borrower creditworthiness by taking into account not only the credit bureau data, but also the student’s academic characteristics such as GPA, course of study, class standing, and year of study.

What is the repayment term of the loan?

The repayment term begins 6 months after the borrower graduates or ceases to be enrolled at least half-time in an eligible degree-granting program. Once repayment begins, the borrower has 10 years to repay the loan.

How soon will a borrower receive the loan proceeds?

The loan proceeds will be sent to the school by check or through electronic funds transfer (EFT). The check will usually be mailed within 5-7 business days of the borrower accepting their final disclosure unless the school requests a later date.

How often is accrued interest capitalized?

Unpaid interest accrues while the borrower is in school. Upon entering full repayment, all accrued and unpaid interest is capitalized (or added) to the principal balance once at the time repayment begins.

What documentation is provided to borrowers?

What are the Forbearance policies?

Borrowers may request Forbearance due to economic hardship for up to 18 months over the life of the loan. Borrowers are eligible to receive three Forbearance periods up to 6 months each. However, only one Forbearance period may be requested in a calendar year. Interest continues to accrue during Forbearance and the term of the loan is not extended.

What repayment options are available?

Two in-school repayment options allow the borrower to defer full principal + interest payments until six months after separating from the school:

Interest-Only Repayment: the borrower is immediately responsible for making full monthly interest payments on the loan while enrolled in school. Six months after separating from the school or ceasing to be enrolled at least-half time in a degree granting program, the borrower enters repayment status and is responsible for making full interest and principal payments.

Proactive Payment: while enrolled at least half-time in a degree granting program, the borrower is only required to make monthly $25 Proactive Payments during the in-school period. Any unpaid accrued interest is capitalized (or added) to the outstanding loan amount once at the end of the in-school period. Six months after separating from the school or ceasing to be enrolled at least-half time in a degree granting program, the borrower enters repayment status and is responsible for making full interest and principal payments.

What is the In-School Repayment period?

The in-school period lasts while the borrower is enrolled at least half-time and includes a 6-month Grace Period once the borrower leaves school. During this time, the borrower is required to either make full interest payments or a monthly $25 Proactive Payment. Any unpaid interest continues to accrue during the in-school period.

What is a Grace Period?

The Grace Period is a 6-month period of time that begins once a borrower graduates or is no longer enrolled at least half-time in a degree granting program. After the Grace Period, the borrower must begin making regular principal and interest payments. Borrowers are required to either make full interest payments or a monthly $25 Proactive Payment during the Grace Period.

What is a Proactive Payment?

A Proactive Payment is a $25 monthly payment the borrower must make while they are in school. The borrower will begin making full principal + interest payments once they have separated from the school or dropped below half-time status. The Proactive Payment helps the borrower demonstrate financial discipline and saves the borrower interest expenses over the life of the loan.

How are payments made?

All monthly loan payments are made to the servicer, LendKey, using either an electronic transfer from a financial institution account designated during the application process or mailed in by check. Borrowers can set up automatic monthly ACH payments directly from their account by logging into their account, clicking the Payments tab, and Manage Payments. Please have the following information available: Financial Institution Name, Account Type, Account Holder Name, Routing Number, and Account Number.

Borrowers can submit payments via paper check to the following loan payment address:

LendKey
P.O. Box 824575
Philadelphia, PA 19182-4575

Please write your Loan ID and the payment date in the memo line. For example, if your payment is for your March 1st invoice, please put “03/01/12” next to your Loan ID.

When do borrowers enter full repayment status?

Borrowers are given a six month Grace Period once they graduate or separate from school before they enter repayment status. Once a borrower enters repayment status they are responsible for making full principal and interest payments.

Some students may not yet have found employment six months after leaving school; therefore, borrowers may request to pay just the interest expense on the loan for the first two years while in repayment status, this is referred to as the "Initial Interest Only" option.

Can a borrower prepay the loan at any time?

Yes, a borrower may prepay the loan either partially or in full at anytime without incurring any fees or penalties. Please submit prepayments via paper check and ensure to write your Loan ID and “Toward Principal” in the memo line.

Will my personal information be shared with third parties?

How is financial information protected?

Our servers are equipped with Secure Socket Layer (SSL) certificate technology, which encrypts the user's entire online session. Automatic sign out occurs after a period of inactivity. All banking information and social security numbers are stored in a secure off-site data center. All users must pass through our secure verification systems to prevent identity theft.

How does identity verification work?

All borrowers must have a valid driver’s license or social security number. This information is used to obtain non-credit based questions from an identity verification agency. The user is asked a series of questions that must be answered correctly. Since these questions are not based on a person’s credit history, obtaining another person’s credit report does not provide sufficient information to pass our identity verification test. Those who violate our security and privacy protections are subject to disciplinary action, including prosecution to the fullest extent allowable by law.

Are you a candidate for a Private Student Loan Consolidation?

Applicants must have reliable gross monthly income of $2,000 to apply alone. To apply with a cosigner, applicants must have reliable gross monthly income and cosigners must have reliable gross monthly income of $2,000.

US Citizen or Permanent Resident

Private Student Loan Consolidation is available to borrowers who are carrying private student loan debt.

Federal student loans cannot be consolidated with the Private Student Loan Consolidation. If you are seeking a federal student loan consolidation, you can learn more details about the process here: http://www.loanconsolidation.ed.gov/

†This loan has a variable interest rate that is based on a publicly available index, the Prime, as published in The Wall Street Journal. Your rate may change each month and will be calculated by adding the Prime to a margin between 2.50% and 3.00%. Rates and terms based on credit criteria and are all subject to change. The lower rate displayed in the rate range above assumes a 0.25% rate reduction upon borrower enrolling in automatic payments. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is cancelled, any increase will take the form of higher payments.

*APR = Annual Percentage Rate. Rates and terms based on credit criteria and are all subject to change.

What is a private student loan consolidation?

Can I refinance both my federal loans and private loans with the Limestone Federal Credit Union Private Student Loan Consolidation?

At this time, you can only consolidate private student loans with the Limestone Federal Credit Union Private Student Loan Consolidation. To consolidate federal loans, please visit: http://loanconsolidation.ed.gov.

Who is eligible for the Limestone Federal Credit Union Private Student Loan Consolidation?

To apply for the Limestone Federal Credit Union Private Student Loan Consolidation, you must be a US Citizen or Permanent Resident who graduated from an eligible school and a member of Limestone Federal Credit Union.

To apply alone, applicants must have reliable gross monthly income of $2,000. To apply with a cosigner, applicants must have reliable gross monthly income and cosigners must have reliable gross monthly income of $2,000.

How do I know if my school is eligible for a loan?

What is a cosigner?

A cosigner is a parent, grandparent, guardian or other adult who is creditworthy and willing to assume legal responsibility for the loan liabilities along with you. The cosigner must be a US Citizen or Permanent Resident.

Is a cosigner required to obtain a private student loan consolidation?

In some instances, a cosigner is required to obtain the Limestone Federal Credit Union Private Student Loan Consolidation. A creditworthy cosigner increases the likelihood of your loan approval and may lead to a lower loan rate. Creditworthy borrowers that meet the credit requirements may apply without a cosigner.

Will the cosigner’s credit record be affected?

Is the cosigner responsible for repaying the loan?

If the borrower fails to repay the loan, then the cosigner is responsible for repaying the loan. However, the cosigner may be released of this obligation once the borrower is able to meet certain criteria to determine creditworthiness and makes 24 consecutive and on-time full payments of principal and interest during the Repayment Period.

Do I need to be a graduate of an educational institution to be eligible?

What proof of graduation do I need to provide?

Your graduation date needs to be verified through documentation, such as a school transcript, copy of the degree, diploma or certificate, written or verbal school verification, or through an electronic method such as the National Student Loan Clearinghouse.

What payoff information do I need to provide?

You must provide your last statement(s) on your private student loans and a payoff letter or screenshot with a payoff 30-45 days into the future. A payoff letter, obtained from the lender, will state the amount that will satisfy the loan obligation through a specified date in the future.

Will both the borrower and cosigner’s credit be checked?

Yes. During the application process, and as part of the underwriting process, a credit bureau report on both the borrower and cosigner is pulled. The borrower’s creditworthiness or ability to repay the loan is assessed based on the credit bureau reports of both the borrower and cosigner.

What documentation is provided to borrowers?

What are the Forbearance policies?

Borrowers may request Forbearance due to economic hardship for up to 18 months over the life of the loan. Borrowers are eligible to receive three Forbearance periods up to 6 months each, however, only one Forbearance period may be requested in a calendar year. Interest continues to accrue during Forbearance and the term of the loan is not extended.

Is there a floor rate on the loan?

Is there a ceiling rate on the loan?

How are payments made?

All monthly loan payments are made to the third party loan servicer, using either a monthly electronic transfer from a financial institution account designated during the application process or mailed in by check. Checks can be made payable to:

Will my personal information be shared with third parties?

How is financial information protected?

LendKey servers are equipped with Secure Socket Layer (SSL) certificate technology, which encrypts the user’s entire online session. Automatic sign out occurs after a period of inactivity. All banking information and social security numbers are stored in a secure off-site data center. All users must pass through our secure verification systems to prevent identity theft.

How does identity verification work?

All borrowers must provide a valid state issued photo identification and a social security number. This information is used to obtain non-credit based questions from an identity verification agency. The user is asked a series of questions that must be answered correctly. Since these questions are not based on a person’s credit history, obtaining another person’s credit report does not provide sufficient information to pass our identity verification test. Those who violate our security and privacy protections are subject to disciplinary action, including prosecution to the fullest extent allowable by law.